As part of its decision to appoint a Gas Safety Supervisory Body (GSSB), the CER stipulated that a GSSB shall be required to self-finance any establishment costs, whilst the treatment of operating costs and revenues incurred by the GSSB would be assessed by the CER. In July 2008, the CER published a decision paper (CER/08/108), which provided a framework for the economic regulation of the Gas Safety Supervisory Body.
The Economic Regulation Framework consists of a
- Cost Approval Process;
- Charges Approval Process; &
- Review & Adjustment Process.
Cost Approval Process
RGII submitted tender documents to the CER during the designation process for the appointment of a GSSB, which were subsequently approved by the CER, thus providing a basis for the GSSB to recover the costs through fees and charges. These Approved Costs are applicable for the remainder of the term of appointment, unless revised by the CER.
Charges Approval Process
The GSSB is regulated on the basis that it should be able to recover (through charges) an amount sufficient to cover the efficient costs of undertaking the activities of a GSSB. Consequently, RGII submitted a Charging Methodology during the Designation Process for CER approval. Essentially, the Charging Methodology specifies the manner in which Approved Costs are converted into charges, whilst detailing the proposed charges for the period of the Designation Term. Any subsequent change in the Approved Charges or the Charging Methodology can only be implemented with the prior consent of the CER.
Review Process
The GSSB is required to provide independent audited accounts on an annual basis to the CER, which shall be submitted within 60 days after the end of each year. The annual report shall describe the activities and operations of the GSSB, and any further details on its financial performance for the preceding year. The GSSB's annual report and financial statments are available to download on their website: www.rgii.ie .
To view the CER's decision regarding Economic Aspects of Regulating Gas Safety, please click on the link below.